Union College
Background
In general, nonprofits don’t ACTUALLY receive non-profit credit card processing fees. Most banks and processors charge them “flat rate pricing” which means that the nonprofit doesn’t receive the benefit of reduced processing costs.
The nonprofit school was losing over $100,000 every year in chargeoff student accounts. Payment plans that didn’t complete before the student graduated.
The nonprofit school was using old technology to process payments at their bookstore and cafeteria. Their legacy POS system kept crashing and they didn’t have their data safeguarded.
They weren’t receiving support from their processor. They were getting gouged in non-compliance fees. $150/month on ALL EIGHT (!) of their merchant accounts.
Why They Needed Us
- Client is a small non-profit college but wasn’t getting non-profit credit card processing rates. Client was paying non-compliance fees of $150 per month on 8 merchant accounts, in addition to high processing rates. They were stuck on old equipment for their bookstore and cafeteria.
- Credit cards expiring on student accounts when students owed a balance and were on payment plans (leading to charge offs on tuition).
- Didn’t have effective technology solutions for collecting invoices and payments on tuition accounts. The majority of payments still happened when parents or students called in over the phone, to pay their bill (inefficient cashflow strategy).
- Their IT department was very frustrated with the complex PCI Compliance renewal process. Client was failing the compliance scans, leading to failure fees and non-compliance costs.
- Receiving surprise and non-disclosed rate increases from their current processor.
Our Impact
- Saved them over $30k and averaged over 20% reduction in costs per year.
- Implemented TRUE nonprofit pricing, averaging 10% lower cost of each transaction, due to their nonprofit status (most schools and nonprofits don’t know this).’
- Provided the support and service they needed to finally become PCI Compliant.
- Safeguarded their data by tokenizing all of their transactions.
- Improved collection of recurring payment plans by over 40% with our effective billing and invoicing strategies. Auto updater of Visa/MasterCard transactions. Recurring payment plans would automatically update, leading to successful payments.
- Empowered them with electronic billing and invoicing, so most payments happened via invoice and electronic bill instead of parents over the phone (huge time savings and convenience for both parents/students and their staff).
- Implemented tokenization of all credit card data – radically reducing their scope of PCI Compliance, making the transaction process more secure and helping them become PCI Compliant. Eliminated their non-compliance fees.
- Eliminated all rate increases, permanently.
How Did We Do It?
We implemented TRUE nonprofit pricing, averaging 10% lower cost of each transaction, due to their nonprofit status (most schools and nonprofits don’t know this).
Provided the support and service they needed to finally become PCI Compliant.
Safeguarded their data by tokenizing all of their transactions.
Improved collection of recurring payment plans by over 40% with our effective billing and invoicing strategies. Auto updater of Visa/MasterCard transactions. Recurring payment plans would automatically update, leading to successful payments.
Shifted most transactions FROM parents/students calling in over the phone to make their payments (inefficient and a hassle), TO easy and convenient 24/7/365 electronic invoice payments. Improved collection rates and saved them a lot of time and money.
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